Tuesday, 28 February 2023

Zoom reckons it's going to be around for years to come

Zoom has announced strong end of year financial results, showing the apparent continuing appeal of its video conferencing platform even in a period where many companies announced mass layoffs and huge cost-cutting measures.

The platform saw a 27% growth in customers, which CEO Eric Yuan puts largely down to its dedicated, and growing, enterprise customer base.

Enterprise revenue was up a staggering 24% and accounting for more than half of the company’s total revenue on its own, with Zoom now boasting an estimated 213,000 Enterprise customers.

Zoom end-of-year results

Total revenue for the fiscal year was up 7% year-over-year to the sum of $4.39 billion, with the final quarter accounting for almost exactly a quarter of that, at $1.12 billion (up 4% YoY).

“While the macroeconomic situation continues to negatively impact our overall growth, we have maintained a healthy balance sheet," Yuan said.

Zoom’s predictions for the future are slightly more modest than its recent successes, but it still measures a healthy growth with fiscal year 2024 revenue estimated to sit between $4.44 and $4.46 billion.

While Zoom has an aspirational outlook for the year ahead, it has not been immune from the struggle facing almost every technology firm in recent months as spending has slowed down. Just days after its fourth quarter ended, the company announced the redundancies of around 1,300 workers, or 15% of its headcount - one of the most significant layoffs proportionally with other companies tending to stick below 10%.

Zoom owes much of its success to the continuing trend of hybrid working, with companies being forced to spend on video calling suites to enable collaboration among workers. With no immediate sign of a mass return to office, the company looks to be in a fairly good spot for some time yet.

https://ift.tt/qTsO6Wg

No comments:

Post a Comment